Severstal to boost biofuel use in iron and steel mining and production

In Russia, Severstal, one of the world’s largest vertically integrated steel and mining companies, has taken a strategic decision to increase the share of renewable energy in its energy portfolio, in part by increasing heat generation from biofuels at the operating boiler houses of Karelsky Okatysh, the leading iron ore mining and processing company in Russia. Karelsky Okatysh will gradually increase the share of biofuels in the balance of heat production from 1.2% in 2021 to 13.5% in 2026.

Karelsky Okatysh’s total energy consumption in 2020 was 264,532 Gcal/year. 3,060 Gcal (1.2% of the total consumption) was energy produced using biofuel, while the rest was generated from fuel oil. At the same time, Karelsky Okatysh generates heat from biofuel (wood chips) at its own boiler house. Currently, the use of alternative fuels (natural gas) is not possible at Karelsky Okatysh due to its remote location and lack of infrastructure, but the company sees an opportunity to increase the purchase of high-quality wood chips, including from local suppliers.